Barr (a.g.) Share Discussion Threads

[spectoacc] 06/12/2021 13:56

Not clear what they've paid vs profits or likely profits - is it a good deal?

But hard to see the synergies - IrnBru vs food & oat milk, which presumably doesn't sell in cans to Scots.

Not saying they can't make a go of it, nor that it won't prove a winner - just wasn't expecting nor particularly looking for it.

Time will tell. At least MOMA isn't a recernt start-up.

[philanderer] 06/12/2021 13:23

Specto, it's an interesting acquisition.

Moma Foods in firm’s first step into wellness market

[philanderer] 06/12/2021 13:19

MIDAS SHARE TIPS UPDATE: Irn-Bru maker AG Barr gaining strength

[spectoacc] 06/12/2021 07:21

We wondered what BAG may do with their cash - consolidate? Attempt another merger with Britvic? Distribute it?

No - buy a jumbo oats maker. Not sure I see it:


"We are delighted to announce that the Group has taken an initial c.60% equity stake in MOMA Foods Limited ("MOMA") with an agreed path to full ownership over the next 3 years.

MOMA was founded by Tom Mercer in 2006 and quickly established itself as a modern, challenger brand in the porridge market, using the finest quality, British jumbo oats. Most recently MOMA has diversified into the high growth plant-based milk sector, and is now the UK's 3rd largest oat milk brand. MOMA also produces a range of low sugar granola and bircher muesli branded products."

[philanderer] 01/12/2021 14:39

Irn-Bru’s iconic ‘The Snowman’ has been named most memorable Scottish Christmas ad - and it's back on TV

[spectoacc] 01/12/2021 07:22

"Annual compounder" - after yesterday's spike up, it's now up 5% over 1 year, down 14% over 2 years, down 34% over 3 years, and up the same 5% in 5 years as it is over 1.

What's it compounding, if not profits or share price.

Happy to be long it tho.

[m_kerr] 30/11/2021 23:10

it's hard to call it a compounder - it's profits haven't budged in about 7 years. but it is a well invested, highly profitable company.

[philanderer] 30/11/2021 16:59

Afternoon EI, same here :-)


AG Barr ready for inflation, says Liberum


AG Barr (BAG) has provided another upgrade and Liberum believes there is more to come from the maker of Irn Bru thanks to its ability to withstand an inflationary environment.

Analyst Wayne Brown retained his ‘buy’ recommendation and target price of 655p on the stock, which rose 13%, or 61p, to 529p on Monday.

‘Another upgrade two months before year-end suggests a high degree of confidence and more to come is now highly likely,’ he said.

‘AG Barr is an annual compounder where performance is highly sustainable and dependable.’

Brown said in an inflationary environment ‘investors should look to buy into annual compounders with high levels of predictable revenue streams, and with the ability to utilise multiple levers to offset inflationary pressures’, such as pricing power, promotions and multiple sales channels, all of which ‘de-risks’ the business.

[essentialinvestor] 30/11/2021 16:57

My best performer over the last week!, that's not saying much ).

[philanderer] 30/11/2021 16:53

Liberum analyst Wayne Brown commented: ‘Another upgrade two months before year-end suggests high degree of confidence and more to come is now highly likely. AG Barr is an annual compounder where performance is highly sustainable and dependable.

‘In an inflationary environment, investors should look to buy into annual compounders with high levels of predictable revenue streams, and with the ability to utilise multiple levers to offset inflationary pressures, e.g., pricing power, a flexible promotional mix and pack mix, and sales through multiple distribution channel, which de-risks the business.’

His counterpart at Shore Capital Darren Shirley was similarly positive. He said: ‘With an exciting portfolio of brands underpinning attractive margins (15.7% EBIT for FY22), sustained cash generation (free cash flow yield two-year average of 7.3%) and with a balance sheet that provides considerable optionality (net cash of £74 million) there is much to like in the AG Barr investment case.’


Shares Mgazine

[m_kerr] 29/11/2021 15:44

am i missing something? that update was basically in line with what you'd expect given H1 results. market isn't always predictable but it was certainly upbeat.

[philanderer] 29/11/2021 11:44

That's a good one to wake up to :-)

[qvg] 29/11/2021 10:17

time for a top up

[essentialinvestor] 29/11/2021 09:42

Very welcome statement, estimates did look too low.

[spectoacc] 29/11/2021 09:38

"As a result of our continued strong volume performance and despite ongoing near term operating cost pressures, we now anticipate both revenue and profit before tax for the full year to be ahead of current market expectations. Assuming no significant changes to current market conditions, we expect revenue to be in the order of £264m and profit before tax to be around £41m.

The fast moving situation in relation to the COVID-19 pandemic remains a risk however we expect our revenue momentum to continue into 2022 and we plan to provide a further trading update in early February 2022."

[m_kerr] 28/11/2021 15:03

BARR under indexes in the on trade, unlike Britvic, which is significantly over indexed in that sector, so if there are any further interruptions to pubs and bars etc, BARR should be relatively insulated against a potential drop in trade (due to the new covid variant. my source for this info is the CMA report into the Barr-Britvic merger back in 2013.

[km18] 26/11/2021 14:53

From WealthOracleAM a few months ago...

AG Barr published its interims for the 27 weeks ended August 1st 2021. Revenues were up 19.5% to £135.3m, statutory profit before tax was up 378% to £24.4m, net cash at the bank was up 115% to £65.6m. And dividends were recommenced comprising an interim dividend of 2.00 pence per share plus a one-off special dividend of 10.00 pence per share. Valuation is average but not a constraint on decent share price gains. And the company is high quality – profitability ratios are top third for the industry and net cash is up to £65.6m. The company is on track to record strong full year profit performance ahead of pre-Covid FY20 levels and a little ahead of consensus expectations. AG Barr looks like a pretty solid BUY.

[spectoacc] 25/11/2021 06:54

Train doesn't sell, look at eg PSON. It's why he's not the guru he's made out to be IMO.

[makinbuks] 24/11/2021 18:58

Big seller? Nick Train?

[essentialinvestor] 24/11/2021 17:53

They have just produced their best ever H1,
although tbf there was some pent up demand in that.

[justiceforthemany] 24/11/2021 17:41

Indices may be near the highs but a lot of shares like this one are at one year lows & significantly off their highs and pre pandemic price. Possibly some weak support at 460p but was at 380p Sept 2020.

[essentialinvestor] 24/11/2021 16:16

Increased my holding by 50%,

whether that's a good idea or not!.

[justiceforthemany] 24/11/2021 16:06

Very positive update by Britvic today yet no read across here. Surprising.

[m_kerr] 23/11/2021 18:04

IMV there are multiple avenues to realising value here. share buyback, special dividend, m&a, potential takeover. the balance sheet with £65m of net cash, gives them total flexibility. remember that if they take over another brand, they can strip out a huge amount of cost and manufacture in their existing facilities.

the last merger talks with britvic in 2012 mentioned £40m of synergies from combining the two entities. on that basis, an acquirer could pay up to double the current share price and still achieve a good return on that capital. and if there's no takeover, you get a reliable income backed up by a great brand proven to have longevity, and great balance sheet.

at this price, i think on a risk adjusted basis, this is highly undervalued.

[m_kerr] 18/11/2021 22:15

IMV they need more brands. strathmore is commoditised water, not a brand. they could acquire up to a value of £200m quite easily, though beverage brands are rarely for sale at reasonable prices. ribena / lucozade which i'd imagine would have a similar margin to BARR was sold for 2.7 x revenue in 2013. that would imply 35-40% upside from here.